Proposed Michigan Tax Would Raise Insurance Premiums for Consumers

Michigan lawmakers have proposed a state tax on healthcare claims that would help fund medical care for low-income residents, according to a Detroit News report.

The tax is expected to cost some insurers and employers millions of dollars a year and lead to higher insurance premiums to consumers. Manufacturers and hospitals have come into conflict over the proposed tax, as manufacturers say the tax would halt new hiring and reduce employee benefits and hospitals say they could lose workers if the tax is defeated and Medicaid funding is cut.

Michigan’s 2012 budget, signed by Gov. Rick Snyder on Tuesday, depends on the passage of a 1 percent claims tax to fund Medicaid, which provides healthcare coverage to approximately 1.9 million Michigan residents. The tax would replace a 6 percent use tax that health maintenance organizations currently pay. The current tax does not affect consumers.

The current 6 percent use tax has been endangered by the federal government’s pending decision to disallow its use for federal matching funds. The proposed tax would shift responsibility for paying $400 million towards Medicaid from 14 Medicaid health plans to every health insurer and self-funded employer plan, according to the report.

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"Working abroad? You can have confidence in my ability to handle the complexities of working overseas. Know that I am available to answer your questions, even if you live in another state, another time zone or another country."

--Scot Smith

"Is Payroll giving you a headache? I am here to take the confusion out of payroll and make it simple for you."

--Melissa King

"Do you need to know what your business is worth? As a CVA I handle everything from estates to divorce to mergers and acquisitions. Count on me for prompt and professional service."

--Heather Graham

"Too time-consuming to make a trip into our office for help? I can save you time and money by using technology to remotely fix problems or just answer questions."

--Jennifer Wentworth

"Business valuation and litigation support are serious business. I take the time to put myself in your shoes and understand your needs. The best outcome is achieved when your business valuation expert truly understands your situation." --Paul Murray

"Want more than just tax preparation? I have always told prospective clients that most anyone can provide accounting and tax services from a compliance perspective. Good CPAs provide tax saving strategies and other business insights to increase profitability." --Gene Smith

"Does your business need financial direction? I will help you understand your financial reports and set reasonable expectations, both of which are key to making sound business decisions."

--Keith Frame

"Getting stuck in QuickBooks? I can get you unstuck, and help you learn the software to run your business more effectively."

--Tina Powell

"Tax season got you stressed? I am here to help get you through tax packets and documents, so you can walk away with the weight off of your shoulders."

--Sara Brubaker

"New to accounting or not sure what questions to ask? I understand those anxieties and am happy to answer your questions and put your concerns to rest."

--Anna Philbert

"Perplexed by tax documents? I am here to answer questions and help you understand the forms, packets of information and required payments our CPAs calculate for you."